Gold and dollar inverse relationship solidified

Gold and dollar inverse relationship solidified

By Shan Saeed

Global Chief Economist

Juwai IQI, Malaysia

Gold market outlook is atrociously bullish as investors are feeling nervous about the US dollar and uncertainty prevailing in the global macroeconomic landscape.

The gold price has appreciated 15% since June 16 as investors are feeling wildly bullish on the yellow metal. Not to be outdone, silver's price has increased by more than 45% since July 16/2020. That even sharper increase in value, likely due to similar reasons as gold. If the Federal Reserve cannot or will not steer the ship back on course, gold and silver bugs seem to be positioned pretty well. US dollar has lost 5% of its value in July while US Dollar index has